Six reasons why India's rupee is in freefall

Related

It’s hard to be optimistic about India right now. Asia’s third-largest economy is growing at the slowest pace in a decade, the trade gap is widening, the rupee is plunging and the government’s cost of borrowing is soaring as confidence evaporates and investors flee.

The rupee is likely to weaken less than the currencies of other emerging currencies given the relatively better fiscal, monetary and political situation in India, said Glen Baptist, president and CEO of Pramerica International Investments. In an interview with ET he said Indian stock markets on an average would grow at 15% over a period of time. What kind of returns investors should be looking from Indian stock markets? Glen Baptist: Indian stock markets should be growing at 15% plus over the time.

NEW DELHI: Mirroring losses in India's equity markets, the rupee too came under pressure and fell to its lowest level in 20 months, below 64/USD on Thursday. Traders said the uptick in non-deliverable forwards traded in Singapore was hitting sentiment for the local unit and prompting custodian banks to sell the rupee, Reuters reported. The report further added that the fall in currency was weighed down by concerns over the government's taxation policies that threaten to reduce the allure of local assets for foreign institutions, while a global debt sell-off also hurt.

NEW DELHI: The rupee hit a fresh two-month high of 64.90 against the dollar in morning trade on Friday after the minutes of the Fed's September 16-17 policy review showed that US policymakers were concerned about the slowing world economy. Most Asian currencies have been climbed against the US dollar, as traders bet the US Federal Reserve might not raise interest rates in calendar 2015.

By ResearchCows:The Indian rupee is in free fall against the U.S. dollar and many people predict that it will fall still further to touch 70 rupees to the dollar. The rupee has already depreciated more than 13% this year and a recent intervention by the central bank, the Reserve Bank of India (RBI), has done little to arrest the slide.

By Andy Mukherjee India's move to outlaw 86 per cent of its currency in circulation is one of those bold economic experiments that thankfully don't occur too often. But because they're rare, the chaos that follows such events becomes a breeding ground for urban legends. The demonetization of India's existing stock of 500 and 1,000 rupee notes has spawned a number of such apocryphal tales, one of which is a $45 billion bonanza for the government that can be used to recapitalize the country's broken banking system, which needs roughly $90 billion to become whole again.

The rupee surged to a near three-year record on Friday as overseas investments flooded into India amid global dollar weakness. Expectations of a further rise in the rupee saw exporters selling dollars and speculators short-selling the American unit, fueling the trend, dealers said. Meanwhile, India's foreign exchange reserves have risen to a record.The rupee gained 0.06 per cent to 63.37 per dollar at the close, a level it last touched on April 29, 2015, having strengthened to 63.32 during the day. The last time the rupee touched this intraday high was the same day in April 2015.

When uncertainty reigns, investors all over the world turn to gold as a safe haven. But some countries are starting to take issue with their residents’ preference for storing wealth in gold bars, rather than bank accounts.